The Managing Director and Chief Executive Officer of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, says demand for the government-backed student loan scheme has been “overwhelming”, as more Nigerian students seek financial support to continue their education.
Sawyerr disclosed this during an interview on Channels Television’s Sunday Politics, explaining that the scheme has provided crucial assistance to students who might otherwise struggle to remain in tertiary institutions.
“The demand has been overwhelming, because clearly a lot of people have struggled to get into these institutions,” he said. “They are hanging on by the skin of their teeth to stay in the institution, and this programme came as a rescue for them.”
According to the NELFUND chief, the organisation is currently assessing the rising demand and analysing disbursement figures to better understand the financial needs of the programme.
He revealed that NELFUND has so far disbursed ₦162 billion in upkeep allowances to students as the scheme continues to expand across public tertiary institutions.
Sawyerr said the programme is also beginning to influence competition among tertiary institutions because students now have greater financial flexibility when deciding where to pursue their education.
The NELFUND boss also rejected allegations that the fund gives preferential treatment to children of members of the All Progressives Congress (APC), describing the claim as “completely ridiculous”.
He explained that the application and disbursement process was designed “without bias”, political affiliation or other considerations, with beneficiaries selected based on established eligibility requirements.
On how NELFUND determines which students require assistance with their fees, Sawyerr said the organisation uses available information and established processes to assess applicants and determine eligibility.
He also referenced research indicating that the programme has helped reduce the rate of students dropping out of tertiary institutions, saying it has “reduced by 20 per cent.”
On repayment of the loans, Sawyerr said beneficiaries should not be subjected to excessive financial pressure, explaining that the repayment structure is designed around their capacity to repay.
He added that beneficiaries would become increasingly traceable as the repayment system is further developed.
The NELFUND chief also addressed President Bola Tinubu’s announcement that funds recovered by the Economic and Financial Crimes Commission (EFCC) would be channelled towards supporting the student loan programme.
According to Sawyerr, however, the recovered funds have not yet been received by NELFUND.
The student loan programme was established under the Student Loans Act, which President Bola Tinubu signed into law in April 2024.
The scheme provides interest-free financial support to eligible Nigerian students enrolled in public tertiary institutions.
It covers approved institutional charges as well as upkeep allowances, while repayment is scheduled to begin two years after beneficiaries complete the National Youth Service Corps (NYSC) programme.
The growing demand, according to NELFUND, highlights the financial challenges facing many Nigerian students and the increasing role of the student loan scheme in helping them remain in school.
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